D&O - Cyber Risks

Although cyber related claims on D&O insurance policies are still relatively rare, they are nonetheless increasing in importance, as class action litigation becomes a consequential risk of proliferating cyber-crime incidents. Policies tailored specifically to cyber risks are in an early stage of evolution and the wrinkles are still being ironed out. Insurance professionals are still learning the best approaches and responses, often in reaction to a major event, and insurers have not had enough time to adequately model and set appropriate premiums given the fast changing and multi-jurisdictional threat of cyber-attacks.

They currently face the significant challenge of modelling risk in an actively developing area where the applicable laws are generally no more than ten years old. The threat posed by cyber-breaches has been changing faster than the security measures used to counter them can keep up. Applicable D&O policies, therefore, can quickly become outdated and